My partner picked up a set of component cables, no change.
Don't take this the wrong way; I'm just trying to cover all possibilities. Are you absolutely positively certain that you switched inputs on your TV from HDMI to component cables when you did this test?
On top of the HD issue, my blockbuster on demand has not worked since day one either. If I unplug the receiver it will download 20% of the movie I am trying to watch, and then just fail. Tried wireless and ethernet connections, same problem on every Hopper we have had.
I think this is a separate issue attributable to problems on your local LAN, or possibly your ISP. I seriously doubt that wired Ethernet would fail on "every Hopper" you have had. But strange things sometimes happen. I was going crazy for about a week, all due to an intermittent connection inside a wired Ethernet cable. Throwing out the problem cable resolved my issue completely. But failures of cables are rare; failures of wireless connections are common.